Milk cart maker races ahead

Milk floats may not be the most racy of vehicles, but electric engine manufacturer Tanfield, which still counts the milkman's humble mode of transport among its products, reported soaring interim results yesterday on a surge in demand for its zero emission vehicles and work platforms.

Pre-tax profits rose 209% to £5.4m and revenue increased 120% to £36.8m in the first half. Turnover in the zero-emission vehicles division rose 47% to £13.1m.

Tanfield expects to make engines for 250 vehicles by the end of the year - a bold target considering it has sold just under 250 vehicles since 2005 when it started manufacturing engines for zero-emission electric vehicles and aerial work platforms - and 30 engines a week starting in 2008. Investec analyst, Chris Dyett, said Tanfield could face considerable future challenges as others encroach on its market.

It is to set up a manufacturing plant in California to supply Ford chassis with electrical engines from December. This will mark the Ford Transit's American debut, albeit under the Edison Smith brand. Darren Kell, Tanfield's chief executive, said he expected demand to exceed Britain as the larger American market had "higher levels of acceptance" not hindered by Britain's "jaded" perceived connection between electric vehicles and milk carts.

Tanfield announced it had secured its second big order, and would supply 50 vehicles to an undisclosed customer. In April TNT bought 55 vehicles.